By: Jeena Cho, San Francisco bankruptcy attorney

A co-signer is responsible for the debt in the event that the primary borrower is unable to pay the debt. Assuming your friend is filing for a Chapter 7 bankruptcy, he will no longer be legally responsible for the debt. If your friend is filing for a Chapter 13 bankruptcy, he may have to pay back a portion. In either situation, it leaves you, the co-signer in a bad position because the lender will look to you for payment. Your friend can reaffirm the debt through bankruptcy, which is a process where the debtor agrees to repay the debt despite the bankruptcy.

You should have a discussion with your friend regarding the debt to see what he is planning on doing. Hopefully, he won’t leave you holding the bag. Your friend, while not legally obligated to pay back the debt can voluntarily choose to pay the debt after the bankruptcy, or reimburse you.

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